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<br />Councilmember Dehen inquired about the impact of property management on the Highway 10 <br />corridor. <br /> <br />Interim City Administrator Nelson replied from staffs perspective as the City bu ys viable <br />properties with functioning businesses, such as the former NAU building; there are costs and <br />impacts to City resources in terms of staff time. They should be thoughtful of what the City is <br />taking on in terms of landlord obligations. <br /> <br />Acting Mayor Elvig inquired about the services contracted with Marty Fisher. <br /> <br />Interim City Administrator Nelson explained Mr. Fisher negotiates the lease, but does not act as <br />landlord. He does not address things such as problems with the building. <br /> <br />Chairperson Elvig inquired about hiring out this type of service. <br /> <br />Public Works Director Olson explained about six months ago there was an issue where there was <br />a dispute between businesses that are leasing building space. That sort of situation comes <br />through staff and then goes to Council. Every time an issue comes before the Council it has been <br />through staff a number of times. <br /> <br />Acting Mayor Elvig stated he has heard the comment several times that the City does not want to <br />play landlord; however,. he is starting to change his thoughts regarding this. If the City is going <br />to be proactive about taking on this corridor and stepping up to buy properties, and if they will be <br />somewhat initiating situations where they will put people in hardship with the closing of medians <br />and things of that nature, he almost feels it is the City's obligation to start acting as landlord and <br />to look at this as part of their obligation and service they will need to provide. He does not fear <br />this if they have good service to support them, and the RALF funds are set up so that this should <br />not be looked at as a financial hardship. If this is taking a lot of staff time the City will be <br />reimbursed for that time; however, he understands if the concern is being short on staff. He <br />stated it is unrealistic to think that the City will take on 30 more properties and not have to act as <br />landlord. <br /> <br />Councilmember Dehen questioned why it is not a sound policy to acquire the most blighted <br />properties and leave the properties that are functioning more efficiently as long as the rights of <br />those properties are not affected. <br /> <br />Acting Mayor Elvig explained if there is a good quality business that wants to grow and expand <br />it cannot do so in this area. The normal market place will not step in to purchase the property; <br />the property value has been decreased from the potential buyer and the growth rate and ability <br />for the business to expand at a modest growth has been capped. He stated the other side to this is <br />the hardship issue of putting in medians, as the businesses are seeing significantly less business <br />coming through. He inquired whether the City will need to acquire those businesses and work <br />out a lease arrangement that makes sense to offset what they have lost in order to keep the <br />businesses here and with the jobs and taxes. <br /> <br />City Council Work Session / May 15,2007 <br />Page 6 of9 <br />